EdgeWave 8-K ST. Bernard Software Reports Its Second Quarter 2009

Exhibit 99.1

ST. BERNARD SOFTWARE REPORTS ITS SECOND QUARTER 2009

FINANCIAL RESULTS

SAN DIEGO, CA, August 14, 2009 -- St. Bernard Software, Inc. (OTC BB:SBSW.OB - News), a leader in Web security appliances, today announced unaudited financial results for its quarter ended June 30, 2009.

Second Quarter 2009 Highlights:

• Generated positive cash flow.

• Produced profit from operations.

• Increased subscription revenues 8%.

• Increased gross profit 9%.

• Increased research and development investment by 17%.

• Decreased sales and marketing and general and administrative expenses 23% and 24%, respectively.

“Our proactive efforts in the preceding quarters to align operating expenses with revenue outlook has produced expected dividends”, said Lou Ryan, CEO of St. Bernard Software. “Faced with a tightened economy, we were still able to deliver growth in revenue while also producing positive cash results.  We are pleased with our operating performance and are confident that our increased investment in our strategic products will show positive results as our road map releases are introduced commercially.”

Financial Results

Revenue for the quarter ended June 30, 2009 was $4.8 million, an increase of $154,000 or 3% compared to the comparable period in 2008. The increase was due primarily to an increase in subscription revenues. Subscription revenues were $3.7 million for Q2 2009, which was up from subscription revenues of $3.4 million in Q2 2008 resulting in an 8% growth quarter over prior year quarter. We anticipate subscription revenues to grow through new customer acquisition and growth within our existing customer base.

Total gross margin was $3.5 million for Q2 2009, compared to $3.2 million in Q2 2008 resulting in a 9% growth quarter over prior year quarter. It is important to note that our gross margin can fluctuate significantly depending on the number of appliance sales that occur during the period as this product has a lower gross margin compared to our subscription services.

Sales and marketing expenses were $1.6 million in Q2 2009, which is down from $2.1 million in Q2 2008 resulting in a 23% decrease quarter over prior year quarter. The decrease was primarily a result of lower salaries and wages and discretionary marketing spending associated with our on-going commitment to achieve greater leverage out of our sales and marketing initiatives.

Research and development expenses were $870,000 in Q2 2009, which is up from $746,000 in Q2 2008; a 17% increase quarter over prior year quarter.  Management believes that a significant investment in research and development is required to remain competitive and we expect to continue to invest in research and development activities in pursuit of our product roadmap.

General and administrative expenses were $1.1 million in Q2 of 2009 and $1.4 million in Q2 of 2008; a decrease of 24% mainly due to our continued and extensive cost cutting efforts. The most significant decreases included compensation and consulting expenses of $200,000 and lease and rent expenses of $100,000.

In Q2 2009, stock-based compensation expense was $313,000, compared to $277,000 in Q2 2008, resulting in a 13% increase quarter over prior year due to additional stock option grants to key employees during Q2 2009.

Operating expenses were $3.5 million in Q2 2009, which is down from $4.2 million in Q2 2008 resulting in a 16% decrease quarter over prior year quarter.  This is the net result of $500,000 in decreased sales and marketing expenses and $300,000 in decreased general and administrative expenses, offset by a $100,000 increase in research and development expenses.  We anticipate future quarter’s operating expenses to be closely in line with our Q2 2009 results.  Income from operations was $5,000 in Q2 2009, compared to a loss from operations of $960,000 in Q2 2008; a 101% improvement quarter over prior year quarter.

The Company was cash flow positive in Q2 of 2009.  Cash provided by operations was $48,000 compared to cash used in the same period in 2008 of $708,000. Net increase in cash for Q2 2009 was $121,000 compared to a net decrease in cash for Q2 2008 of $458,000.

Business Outlook

Mr. Ryan added, “We remain confident in our ability to execute effectively throughout 2009 even in the face of a compromised economy.  Our expenses are in alignment with current business conditions and tight management has allowed us to increase investment in our product development which will begin to deliver returns for us as new version releases are launched through the end of 2009.”

About St. Bernard

St. Bernard Software develops and markets Internet security appliances and services that empower IT professionals to effectively, efficiently and intelligently manage their enterprise's Internet-based resources. Originally founded in 1995 as a market-leader in data security with its flagship product, Open File Manager(TM), the company is now recognized for delivering today's #1 Web filtering and security appliance, iPrism®. With millions of end users worldwide in more than 5,000 enterprises, educational institutions, SMB, and government agencies, St. Bernard strives to deliver simple, high performance solutions that offer excellent value to our customers.

Based in San Diego, California, St. Bernard (OTC BB:SBSW.OB - News) markets its solutions through a network of value added resellers, distributors, system integrators, OEM partners and directly to end users. For more information about St. Bernard Software, visit www.stbernard.com.

©2009 St. Bernard Software, Inc. All rights reserved. The St. Bernard Software logo, LivePrism, iPrism, and iGuard are trademarks of St. Bernard Software, Inc. All other trademarks and registered trademarks are hereby acknowledged.

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Safe Harbor Statement

This press release may contain forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, among other things, any projections of earnings, revenues (including where the underlying contract has already been signed), or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include, among other things, performance of contracts by customers and partners; employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; and the difficulty of keeping expense growth at modest levels while increasing revenues. Announcements of contract awards should not be interpreted as reflecting revenue in any particular period and may relate to revenue recorded in prior periods. These and other risks and factors that could cause events or our results to differ from those expressed or implied by such forward-looking statements are described in our most recent annual report on Form 10-KSB, as well as other subsequent filings with the Securities and Exchange Commission. We assume no obligation and do not intend to update these forward-looking statements.

Contact:

St. Bernard Software

     Lorrie Hunsaker

     St. Bernard Software

     Investor and Public Relations Manager

     (858) 524-2002

     IR@stbernard.com

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St. Bernard Software, Inc.
Consolidated Balance Sheets
	June 30, 2009			December 31, 2008
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	1,051,000		$	2,051,000
Accounts receivable - net of allowance for doubtful accounts of
$25,000 and $52,000 at June 30, 2009 and December 31, 2008,
respectively		2,706,000			3,170,000
Inventories - net		430,000			364,000
Prepaid expenses and other current assets		378,000			381,000
Total current assets		4,565,000			5,966,000
Fixed Assets - Net		708,000			828,000
Other Assets		627,000			281,000
Goodwill		7,568,000			7,568,000
Total Assets	$	13,468,000		$	14,643,000
Liabilities and Stockholders’ Deficit
Current Liabilities
Short-term borrowings	$	2,225,000		$	2,462,000
Accounts payable		1,201,000			1,270,000
Accrued compensation expenses		840,000			1,361,000
Accrued expenses and other current liabilities		586,000			518,000
Warranty liability		184,000			195,000
Current portion of capitalized lease obligations		88,000			147,000
Deferred revenue		10,060,000			10,469,000
Total current liabilities		15,184,000			16,422,000
Deferred Rent		59,000			118,000
Capitalized Lease Obligations, Less Current Portion		-			22,000
Deferred Revenue		7,344,000			7,152,000
Total liabilities		22,587,000			23,714,000
Stockholders’ Deficit
Preferred stock, $0.01 par value; 5,000,000 shares
authorized; no shares issued and outstanding		-			-
Common stock, $0.01 par value; 50,000,000 shares authorized;
14,838,940 and 14,783,090 shares issued and outstanding at
June 30, 2009 and December 31, 2008, respectively		148,000			148,000
Additional paid-in capital		40,796,000			40,308,000
Accumulated deficit		(50,063,000	)		(49,527,000	)
Total stockholders’ deficit		(9,119,000	)		(9,071,000	)
Total Liabilities and Stockholders’ Deficit	$	13,468,000		$	14,643,000

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	St. Bernard Software, Inc.
	Unaudited Consolidated Statements of Operations
	Three months ended June 30,						Six months ended June 30,
	2009			2008			2009			2008
Revenues
Subscription	$	3,692,000		$	3,427,000		$	7,381,000		$	6,731,000
Appliance		1,062,000			1,161,000			1,816,000			1,762,000
License		-			12,000			6,000			16,000
Total Revenues		4,754,000			4,600,000			9,203,000			8,509,000
Cost of Revenues
Subscription		549,000			557,000			1,123,000			1,113,000
Appliance		696,000			811,000			1,232,000			1,236,000
License		-			4,000			2,000			5,000
Total Cost of Revenues		1,245,000			1,372,000			2,357,000			2,354,000
Gross Profit		3,509,000			3,228,000			6,846,000			6,155,000
Operating Expenses
Sales and marketing		1,581,000			2,065,000			3,241,000			3,881,000
Research and development		870,000			746,000			1,905,000			1,499,000
General and administrative		1,053,000			1,377,000			2,247,000			2,575,000
Total Operating Expenses		3,504,000			4,188,000			7,393,000			7,955,000
Income (Loss) from Operations		5,000			(960,000	)		(547,000	)		(1,800,000	)
Other Income
Interest expense - net		79,000			157,000			171,000			300,000
Gain on sale of assets		-			-			-			(320,000	)
Other income		(22,000	)		(180,000	)		(38,000	)		(444,000	)
Total Other Expense (Income)		57,000			(23,000	)		133,000			(464,000	)
Loss Before Income Taxes		(52,000	)		(937,000	)		(680,000	)		(1,336,000	)
Income tax expense		-			(3,000	)		(5,000	)		(3,000	)
Net Loss	$	(52,000	)	$	(940,000	)	$	(685,000	)	$	(1,339,000	)
Loss Per Common Share - Basic and Diluted	$	(0.00	)	$	(0.06	)	$	(0.05	)	$	(0.09	)
Weighted Average Shares Outstanding		14,838,940			14,772,367			14,838,322			14,772,096

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St. Bernard Software, Inc.
Unaudited Consolidated Statements of Cash Flows
	Six months ended June 30,
	2009			2008
Cash Flows From Operating Activities
Net loss	$	(685,000	)	$	(1,339,000	)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization		196,000			321,000
Allowance for doubtful accounts		(27,000	)		11,000
Gain on sale of assets		-			(320,000	)
Gain on change in fair value of warrant derivative liability		(16,000	)		-
Stock-based compensation expense		669,000			334,000
Noncash interest expense		77,000			122,000
Increase (decrease) in cash resulting from changes in:
Accounts receivable		491,000			(525,000	)
Inventories		(66,000	)		(187,000	)
Prepaid expenses and other assets		(420,000	)		38,000
Accounts payable		(69,000	)		(911,000	)
Accrued expenses and other current liabilities		(499,000	)		(275,000	)
Deferred rent		(38,000	)		51,000
Warranty liability		(11,000	)		33,000
Deferred revenue		(217,000	)		582,000
Net cash used in operating activities		(615,000	)		(2,065,000	)
Cash Flows From Investing Activities
Purchases of fixed assets		(76,000	)		(4,000	)
Proceeds from the sale of assets		-			320,000
Net cash provided (used) by investing activities		(76,000	)		316,000
Cash Flows From Financing Activities
Proceeds from the sales of stock under the employee stock purchase plan		9,000			6,000
Principal payments on capitalized lease obligations		(81,000	)		(74,000	)
Net (decrease) increase in short-term borrowings		(237,000	)		896,000
Net cash (used) provided by financing activities		(309,000	)		828,000
Net Decrease in Cash and Cash Equivalents		(1,000,000	)		(921,000	)
Cash and Cash Equivalents at Beginning of Period		2,051,000			1,297,000
Cash and Cash Equivalents at End of Period	$	1,051,000		$	376,000

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